Inventories

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventories

3) Inventories

The Company uses the lower of first-in, first-out (“FIFO”) cost or market method of accounting for inventory. 

Inventories consist of the following:	(in thousands)
	2015			2014
Inventory work-in-process, January 1	$	—		$	—
Production		1,443			—
Spoilage		(117	)		—
Inventory work-in-process, December 31	$	1,326		$	—

Commercial sales of Alferon® will not resume until new batches of commercial filled and finished product are produced and released by the FDA. The Company is continuing the validation of Alferon® production and production of new Alferon® API inventory commenced in February 2015. While the facility is approved by the FDA under the Biological License Application (“BLA”) for Alferon®, this status will need to be reaffirmed by an FDA pre-approval inspection. The Company will also need the FDA’s approval to release commercial product once it has submitted satisfactory stability and quality release data.